Powell to attend House hearing tonight as markets focus on fiscal and US Treasury signals

U.S. Treasury Secretary Janet Yellen will attend a hearing of the House Financial Services Committee tonight at 22:00. The hearing is themed "The Secretary's Annual Testimony on the State of the International Financial System." Given that the yield on the 10-year U.S. Treasury note has already surpassed 5%, the market will focus on whether Yellen provides new signals regarding fiscal policy, treasury issuance and buyback plans, debt management, as well as the outlook for the U.S. dollar and interest rates. If her remarks lean toward deficit control and stabilizing the bond market, it may ease upward pressure on long-term Treasury yields. However, if she signals more fiscal expansion or tolerance for high interest rates, it will be necessary to remain alert to the possibility of Treasury yields rising further, and to pay close attention to correlated moves in the dollar, gold, U.S. equities, and risk assets.